“A purely peer-to-peer version of electronic cash would allow online payments to be sent directly from one party to another without going through a financial institution”.
Transactions without the need for a bank. Payments, loans, investments, all without an expensive middleman. Moreover, a new kind of currency, independent of central banks and traditional institutions. A coin managed only by an open-source algorithm, the value of which is based only on the laws of supply and demand.
This is still revolutionary.
After 10 years, cryptocurrencies and the blockchain technology ceased to be a subject only for geeks and cryptography fanatics. Now, it’s a big market of over $255 billions dollars. Besides Bitcoin, there are hundreds of other cryptocurrencies in the market, most of which offer new innovative features, such as more anonymity, speed, scalability, and so on. And that’s only the beginning. After ten years of existence, the market still has a lot of room to grow.
First of all, please be aware that crypto is risky.
The crypto market is unregulated. Consequently, prices can be extreme volatile. Crypto assets are a novelty, and nobody knows what the market will be like in a few years.
Don’t take these reasons as financial advice and remember: you should alwaysdo your own research before investing in crypto.
That said, let’s see if we can explain why crypto seems to be such a huge deal.
1. Global Economic Context
The global economy is in a delicate position right now. Even before the Covid-19 pandemic, uncertainty was growing. Protectionist measures were becoming increasingly common. The trade war between the USA and China was affecting the economy as a whole. Moreover, interest rates were at a historical low. In the US, interest rates were near zero. Centraleconomies, like Japan, Spain, Switzerland, were dealing with negative interest rates. This means that you had to pay a fee to store money in a bank. Your money lost value over time!
The pandemic has made things worse. Central banks around the world are literally printing money. The American FED printed out $2 trillion USD as a stimulus to the economy. The European Central Bank did something similar. This can’t end well.
The first Bitcoin transaction was made in 2009. In a way, it was a response to the 2008 economic crisis. Clear rules have to be followed to issue this coin, it cannot simply be printed. Bitcoin is a deflationary. It is scarce and, therefore, tends to appreciate over time. The same goes for the majority of cryptocurrencies. Clear rules, deflation, appreciation in prices.
Crypto could be a new era of money.
2. Money with new features
Cryptocurrency has all the mains aspects that define traditional money. It serves as a medium of exchange, with which you can buy or sell products and services. Crypto also can serve as a unit of account. That is to say: you can use it to as a reference to the price of things. Moreover, it’s an excellent store of value. You can save, retrieve, and exchange your crypto at a later time, and it will still have value.
But crypto can offer more.
Some cryptocurrencies are completely untraceable. Transactions that simply cannot be seen by a government or a company – withprivacy coins, that’s already a reality. There are cryptocurrencies that you can stake and earn interest rates by simply storing them. That’s the case for NEO, Zcoin, TRON, DASH… and many others. Some cryptocurrencies, such as Bitcoin or Doge, offer users a possibility to earn crypto by validating network transactions. This process is known as mining.
By using cutting-edge technology, cryptocurrencies offer many new uses of money.
3. You are in charge of your own funds
One of the biggest appeals of cryptocurrency is the possibility to take care of your own funds. You won’t need a bank account to store your crypto or send it anywhere in the world. Also, you won’t need an investment broker to invest in your preferred crypto asset.
Banks are expensive and inefficient. Do you want to send money from one bank to another? Well, you have to pay a fee. Are you planning to send your money to a foreigner country? You’re going to have to pay huge fees, and it will take a few hours to go through.
With crypto, you can completely forget about banks.
All you need is a crypto wallet – in a hardware, desktop, mobile or cell phone form. Check out our article about virtual wallets to learn more about them.
Do you want to send money anywhere in the world? Well, it’s really cheap. You just have to pay a minimal network fee.
Want to invest in crypto? You can make as much as most other crypto owners: store the coins in your wallet and wait for the prices go up. Alternatively, you can trade as much as you want on an exchange platform, making a profit thanks to market fluctuations.
Your money will be always with you – on your hardware, desktop or mobile wallet.
Invest in Cryptocurrency Today
As we can see, there are many good reasons to invest in crypto today. Above all, crypto offers big advantages that fiat money doesn’t. It is reliable, secure, and is much easier to manage. Crypto does not rely on banks and traditional institutions, but on transparent mathematics. For all these reasons, crypto’s value will probably increase in the coming years.
And if you want to exchange cryptocurrency anonymously, with no limits or no fees, take a look at the Cripto InterCambio website. We offer more than one hundred cryptocurrencies, and always provide you the best rates on the market.
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